Dogecoin 'whales' have purchased over 300 million DOGE tokens in the past week, indicating that long-term investors are feeling more confident. Meanwhile, short-term token holders are exiting the market, often selling at a loss after the recent market correction.

The On-chain Dogecoin platform remains strong

According to on-chain data, only 9% of Dogecoin investors who bought in the last 30 days are in profit. This decline indicates that many short-term traders are liquidating their assets. This sell-off was detected a few days ago, with approximately 271 million DOGE sold at a loss.

Notably, this sell-off occurred due to price volatility, leading to forced asset transfers to stronger investors. 'Whales' holding between 100 million to 1 billion DOGE have purchased over 330 million DOGE at discounted prices. This brings their total DOGE holdings to 26.73 billion.

The data also shows that the fundamentals of Dogecoin remain strong, even as daily investor interest declines. Key indicators such as network activity, trading volume, and wallet growth remain stable, indicating that long-term investors are preparing for future growth.

Dogecoin ETF Could Launch Soon

There is no doubt that the dog-inspired memecoin has seen many strong price surges over the years. Recently, Grayscale Investments has submitted a proposal to launch an ETF (exchange-traded fund) tracking the price of the DOGE memecoin.

If regulators approve the submitted proposal, investors will be able to access this proposal in a regulated manner through traditional exchanges.

This will help Dogecoin gain a larger foothold in the mainstream cryptocurrency market. Meanwhile, Grayscale revealed that they will rename Grayscale Dogecoin Trust to Grayscale Dogecoin Trust ETF.

According to TheCoinRise, shares of the new Dogecoin fund will be listed on NYSE Arca under the ticker GDOG. However, this proposal is still awaiting approval from the U.S. Securities and Exchange Commission (SEC).

Strategic Role of Dogecoin

Dogecoin, created in 2013 as a lightweight payment system by software engineers Billy Markus and Jackson Palmer, has become the eighth-largest cryptocurrency by market capitalization.

Remember that the meat processing company has successfully transformed into the Bitcoin mining company Bit Origin based in China, officially launching its cryptocurrency financial management strategy by holding 40.5 million Dogecoin.

This marks a significant turning point in the company's progressing business direction. Bit Origin CEO, Mr. Jiang, stated that the decision to use Dogecoin as the company's financial source is due to this cryptocurrency approaching a 'tipping point' for small payments. This is driven by new interest from developers and the overall increase in institutional engagement with cryptocurrencies.

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